At Sylvina Consulting, we follow a proprietary 15-step approach to compensation plan design where each step is important.
- Perform a client intake interview to ask questions to understand the client’s business.
- Request cost and pricing information to be able to calculate average, group, and per item multipliers.
- Work with the client to set a total field compensation budget, the largest piece of which will be compensation plan earnings.
- Educate the client on compensation plan types so that the client can choose the type of plan that they like best.
- Present the 12 key compensation plan behaviors we want from an independent direct selling sales force.
- Explain several recommended ways to motivate and reward each behavior. Let the client select from the good choices we recommend to them for consideration, or collaboratively come up with new ways to compensate for performance based on client input.
- Create a technical design document that explains all of the business rules of the compensation plan for the software company. This is not a one-page chart. It is a 10-20 page document.
- Model the plan in an Estimated Payout Spreadsheet to estimate the total payout at plan maturity.
- If the total payout exceeds the compensation plan budget, adjust the plan requirements or rewards accordingly to reduce the total payout.
- When the compensation plan design is approved by the client, send the technical design document to the client’s MLM software company.
- Answer the software company’s questions on the plan and review the many versions of its specification document until their document is both accurate and complete.
- Review the client’s compensation plan field documents or create them for the client.
- Audit the results of the first commission runs. Report problems found to the software company and retest after fixes have been made.
- Teach the client how to do the auditing themselves.
- Record a video explaining the company’s compensation plan that the company can use as a model to record its own video.
Our process ensures that a client receives a compensation plan that fits their business and the priorities of the owners.